LSBM101: Marketing Principles and Practice Report on Ryanair

This report provides a detailed analysis of marketing principles and their practical application, using Ryanair, a low-cost airline, as a case study. The report begins by defining key marketing concepts, including production, product, sales, marketing, and societal marketing orientations, explaining thei...Read More

Marketing Principles
and practice

Table of Contents
INTRODUCTION...........................................................................................................................1
Define key concepts of marketing...............................................................................................1
Marketing concepts and comment effectiveness of their uses on an organization.....................2
..........................................................................................................................................................4
CONCLUSION................................................................................................................................4
RECOMMENDATIONS.................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing is defined as a business process of creating relationships and to attract as well
as satisfied their customers. It involves doing promotion, advertisement, as well as distribution of
goods and services for sales. Effective marketing practices and principles depicts the methods of
high level business operations. In this report Ryanair case is taken to study the marketing
principles and policies. It is a multinational commercial airline founded in Ireland and deals in
low cost or no frills travel to European destinations. Under this report discussed about the key
marketing concepts and their effectiveness on the company as well as facilitates appropriate
conclusion with recommendations.
Define key concepts of marketing.
Marketing is a set of institutions and activities that are used for creating, communicating,
delivering and exchanging products and services that are valuable for customers, suppliers,
partners as well as society (THE FIVE MARKETING CONCEPTS, 2019). Marketing concepts
considered as a philosophy which a company implement to increase profits, sale, takes
competitive advantages as well as satisfy customers. There are mainly five concepts that can be
described below: Production orientation: In this concept businesses were concentrate on manufacturing,
production as well as efficiency issues to increase the supply and minimise cost. The
company focused on the mass production at low cost and creates demand for products
itself and maximise profit. Product oriented: It based on the customers favour products which are produced on the
basis of high quality, low prices, innovative features etc. and focused on continuous
product improvements as per the needs and requirements of the consumers. Product
oriented company emphasis on products only not the consumer's needs and expectations. Sales oriented: This concept emphasised on the making actual sale of their products and
services regardless the quality and customers needs. This can be done through large scale
selling and promotional efforts (Shields, 2015). Management prefer aggressive sales
instead of building and developing long term and profitable customer relationships. The
company considers that customers need have to be encouraged and convinced into buying
products and services.
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 Marketing oriented: This focused on customers needs and wants and makes goals and
objectives accordingly. It is considered as a customer first approach or sense and
responds philosophy as well as delivers the desired satisfaction better then their
competitors (Negru, 2018).
 Societal marketing oriented: This market strategy delivers value to their customers in a
manner that develops and maintain well beings of customer's and society's as a whole. It
puts human welfare first or on top before profits and needs satisfaction. This concept
calls upon marketers to build ethical and social consideration into its marketing practices.
Marketing concepts and comment effectiveness of their uses on an organization. Production orientation: This concept based on the bulky production by focusing on
reducing cost and wastages. For example Ryanair has already deals in low cost and no
frills travel but the company can focused on mass production of airlines products or
brings efficiency in their product manufacturing and production process. This will helps
in minimising the overall cost of products and services as well as increase profits. Product oriented: This emphasised on the superior quality, innovative and performance
features of products and develop products and services according to the customers needs
and wants (Kotler, 2015). For example innovative features such as reliability, availability
of fares, services, on-board comfort as well as clarity in fees under control which Ryanair
cannot manage in several ways. This will results in customer's negative thoughts about
the company. They can compile taxes, fees, restricted customer services and leading on
advertisements. Sales oriented: This concept is based on the actual selling rather then the product quality
and consumers needs and requirements. For example Ryanair web sites will be used to
analyse the key prospectives of e-commerce but it can also analyse business and
marketing strategies as well as future site development. This will assist in maximising the
sales and consumers are more aware about their products and services in effective
manner and gives positive results in selling. Marketing oriented: It emphasised on the demands of target market and satisfy them by
serving according to their requirements. For example Ryanair can use marketing practices
and approaches to satisfy their customers needs and expectations by using customer
oriented plans (Shaw, 2016). This will helps in facilitating better products and services as
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compared to its competitors. Also, they can identify the customers preferences towards
food and drink facility etc.
 Societal marketing oriented: It concerned with the welfare of society and customers by
facilitating the best services. For example Ryanair is one of the successful airlines and
continuously focused on lowering costs as well as expanding routes (Kireev, 2016).
Whereas, the company has appeared a big problem related to poor customer services
because they neglect customer service importance and this will cause disappointed of
their customers. The company can use management practices and theories effectively
with this issue to examine with competitive company.
Data and statics of Ryanair:
From the above graph and data's it has been interpreted that Ryanair captures approx 40%
of low cost airlines market and 31% market captured by Easy Jet while other dominate the rest of
the market which is only 29%. the company has high customer traffic as compared to its
competitor such as 4.5 million passengers carrier by Ryanair whereas 30,00,000 passengers
annually by Easy Jet (Ryanair vs. Easy jet: Corporate and Competitive Strategy Analysis, 2019).
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From the above report it has been summarised that Alitaila captures 49.3% airport seat
capacity by carrier which is lead in that criteria. Secondly easy Jet captures 6.2% and top third
Rome Fluminicino Airport seat capacity by carrier is 3.6% which is of the Ryanair.
CONCLUSION
It has been concluded from the above discussion that marketing is essential aspects for
every business organizations and it is useful for grabbing the market opportunities on time. The
marketing concepts are useful for the company to increase the sales and profits as well as take
competitive advantages and satisfy their customers in effective way.
RECOMMENDATIONS
The company should focused on the product and marketing concepts more because this
will helps in increasing the sales and profits. Ryanair should continue with its growth and
expansion strategy due to the market growth and enhance sustainability of its strategy. The
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company should focus on their customer services which are poor and results in dissatisfied
customers so build public image with regards to CSR issues.
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REFERENCES
Books & Journals
Kotler, P. and et. al., 2015. Marketing. Pearson Higher Education AU.
Shields, J. and et. al., 2015. Managing employee performance & reward: Concepts, practices,
strategies. Cambridge University Press.
Shaw, S., 2016. Airline marketing and management. Routledge.
Kireev, V. S. and et. al., 2016. Marketing management as the realization process of research,
production and sale activity of the enterprise. International Review of Management and
Marketing. 6(6S). pp.228-234.
Negru, M. C., 2018. The Role of Marketing Communication for Creating the Ryanair’s Image,
from Consumers Perspectives. Bucharest 2018. p.79.
Online
THE FIVE MARKETING CONCEPTS. 2019. [Online] Available through:
<https://oxidian.ch/en/the-five-marketing-concepts-explained/>.
Ryanair vs. Easyjet: Corporate and Competitive Strategy Analysis. 2019. [Online] Available
through: <https://ivypanda.com/essays/ryanair-vs-easyjet-corporate-and-competitive-
strategy-analysis/>.
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